Sales Tax Asset Receivable Corp.
Sales Tax Asset Revenue Bonds, Fiscal 2015, Series A
In this September 2014 transaction, Siebert Brandford Shank served as one of five joint senior managers for STAR, a local development corporation organized by the City of New York in 2003 to receive an assigned stream of $170 million annual payments from the State of New York.
As joint lead manager, Siebert Brandford Shank was integrally involved in the rating process, documentation, investor presentation, advertising and the quantitative component of the transaction through a series of working group meetings.
As the Corporation wanted to remove its existing DSRF requirement, our firm with one other joint senior manager drafted a rating agency presentation detailing information on the credit and relevant comparable credits. Siebert Brandford Shank provided a rating methodology analysis based on each rating agency’s rating methodology. We also provided criteria for appropriation and special tax credits to further inform the Corporation of possible rating agency outlooks since the credit had not come to market for 10 years. STAR obtained an Aa1/AAA/AA+ rating; there was no difference between the original bond rating with or without a DSRF.
The transaction offered a two-day retail order period prior to institutional pricing. Spreads were tightened by 1 to 2 basis points at preliminary pricing and an additional 4 to 8 basis points at re-pricing. STAR’s noteworthy performance as well as the positive reception for the State of California’s $2 billion general obligation issue led MMD to post 4 to 5 basis-point bumps nine years and out.